Energy Tomorrow Blog
Posted July 17, 2020
Some lawmakers have proposed putting hundreds of thousands of Americans to work in clean energy jobs while moving the U.S. away from natural gas and oil and, presumably, from the jobs our industry supports.
Somebody should check to see if that’s what working men and women want.
A new study released this week by North America’s Building Trades Unions (NABTU) shows that workers appreciate jobs in natural gas and oil over “green-collar” jobs – because they pay better, last longer and provide greater opportunities.
Posted July 8, 2020
As President Trump welcomes Mexican President Andrés Manuel López Obrador to the White House for their first face-to-face meeting, they will tout the landmark United States-Mexico-Canada Agreement (USMCA). The updated North American trade pact, signed in January after months of deliberation, modernizes the longstanding trilateral agreement that was a central issue in the 2016 presidential campaign.
The political importance of the agreement aside, the USMCA is a win-win for American workers, businesses and energy consumers, paving the way for sustained U.S. energy leadership and expanded economic growth. Cross-border trade with Mexico and Canada is key to strengthening the domestic energy industry, which has made the United State the world’s leading producer of oil and natural gas. Today, the U.S. counts Mexico as its number one export market for natural gas and refined products, with Canada as its top destination for crude oil.
By solidifying these critical energy partnerships, the International Trade Commission projects the USMCA could support the creation of between 176,000 and 589,000 American jobs, in addition to the 12 million US jobs and nearly $1.3 trillion in trade already sustained by our partnership with Mexico and Canada. With this record of economic development and job creation among these trading partners, it is clear why Presidents Trump and López Obrador would take a victory lap this week.
Posted June 19, 2020
We’ve discussed the historic link between economic growth and energy – chiefly, natural gas and oil, America’s and the world’s leading energy sources. When the economy grows it boosts demand for energy. And when that energy is supplied, growth is enabled or powered. See this blog by API Chief Economist Dean Foreman, in which he describes data behind our confidence that natural gas and oil will be big participants in the nation’s economic recovery.
Indeed, the indicators of this linkage are visible in API’s June Monthly Statistical Report. Based on May data, the MSR records an increase in U.S. petroleum demand of 2.0 million barrels per day, with motor gasoline leading the way. It’s the largest such increase in nearly 45 years.
Americans are getting back to work, and as they do, they need fuel. Likewise, rising fuel demand reflects increased demand for transportation and delivery of goods and services. As our industry meets this demand, growth is enabled.
Posted June 18, 2020
As the U.S. and world confront the unprecedented combination of a public health crisis, significant economic downturn and tumultuous domestic and global oil markets, we have seen oil demand, prices, and consequently drilling and production fall by historic amounts.
Overall, we see market forces at work, with a re-balancing of supply and demand to historic proportions despite great uncertainties. The underlying fundamentals appear to be constructive and should position the U.S. natural gas and oil industry to participate in an economic recovery. And if the third-party consensus is correct the next year or so could bring positives for U.S. and global energy.
Posted June 17, 2020
Delivering what’s essential. It’s at the heart of what our industry does – and it’s never been more important than right now.
The pandemic has focused Americans on health, safety, family and other critical priorities.
At the same time, we’ve been reminded that the heroes in this crisis are first-responders, doctors and nurses. We’ve also become aware that others – including people working at supermarkets, pharmacies, fuel stations and in modern communications networks – also serve in indispensable roles.
These contributions are highlighted in API’s new video, “Essential."
Posted May 21, 2020
After crude oil futures prices plunged into negative territory for a day last month, there was a good deal of speculation that the same thing could happen this month. Some even pointed to the April futures meltdown as a “doomsday” scenario for U.S. natural gas and oil.
Well, a number of things happened on the way to oil’s “doomsday.”
At the outset, let’s note that what happened with futures in April didn’t repeat this month. Oil futures prices for June delivery of West Texas Intermediate crude, whose contracts expired Tuesday, closed at $32.50 per barrel – about 300% higher than they did for those contracts a month ago. Let’s explore why.
John D. Siciliano
Posted May 20, 2020
Capt. Russell Holmes is the Center for Offshore Safety’s (COS) new director after serving for nearly three decades with the U.S. Coast Guard.
Holmes, who retired from the Coast Guard in 2020, takes over for Charlie Williams, who had led the center since 2012 after a long industry career. Holmes will be taking the center’s mission of offshore safety and environmental protection into its second decade of existence.
The center was created soon after the 2010 Deepwater Horizon incident in the Gulf of Mexico. Since then, the COS has enhanced the safety culture in offshore operations, while supporting federal regulations that mandate Safety and Environmental Management Systems (SEMS) at all operations on the Outer Continental Shelf.
Just prior to joining the center, Holmes served as the Coast Guard’s senior point of contact for offshore safety in the Gulf, overseeing marine inspection and investigation programs that ultimately support SEMS. As he explains in the Q&A below, Holmes says the industry’s professionalism and safety commitment matched his while he was serving as one of industry’s lead regulators.
Posted May 12, 2020
We’ve highlighted the way many Americans and different business sectors, including ours, have helped with relief efforts during the COVID-19 crisis (see here). We’ve also said that natural gas and oil will be leading players as our economy and communities recover.
We’re especially grateful for people on the front lines of the pandemic – doctors, nurses, hospital staffs, first responders, grocery store workers and others who are out there in public spaces every day. API’s new video, “Good Energy,” is our way of saying thanks for what they’re doing to help the rest of us through the crisis and a sign of our industry's commitment to keep supporting them.
Posted May 8, 2020
Some anti-industry voices – apparently not regular readers of this blog – probably missed Monday’s post discussing the strong link between the economy and energy from natural gas and oil.
Not surprisingly, these are the folks arguing that the current coronavirus-associated market downturn surely means the end is near for U.S. oil. Some have cheered the challenges industry faces, with one tweeting that natural gas and oil jobs (good-paying ones, I’ll add) belong in history’s rubbish bin, comparing them to two of the most odious occupations of the past. Well, no one’s going to confuse social media with a friendly game of bean bag, right?
The trouble with these arguments is they’re grounded purely in ideology and neglect that economic, energy, human progress and development go hand-in-hand. As noted in the earlier post, data and history indicate that while the U.S. natural gas and oil industry is working through significant COVID-19 challenges right now – along with a number of other business and industrial sectors – it is poised to power economic recovery as personal driving and commercial traffic increase (fuels), as businesses reopen (electricity) and as manufacturers ramp up operations (power/feedstocks).
Posted May 5, 2020
News reports of a “flotilla” of oil tankers from Saudi Arabia, sailing to the U.S. with more than 40 million barrels of crude oil in their holds for delivery this month, has many Americans questioning why the U.S. – the world’s largest oil and natural gas producer – imports any oil when oversupply associated with the government response to COVID-19 has a number of U.S. operators hurting financially.
Some think President Trump should send the oil fleet home or impose import tariffs. It’s a new chapter in an old debate over why the U.S. imports oil when our domestic production is among the globe’s leaders. In the case of this imported Saudi oil, the answer has much to do with the supply needs of the U.S. refining system.